FCRA Permissible Purpose Account Reviews

Answered by:

Question:

If we obtain consumer reports on our existing customers for purposes of reviewing their status, can we then send some of those customers a solicitation for an increase in their credit line?

Answer:

Reviewing accounts to determine if consumers continue to meet the terms of the account is different from using the credit report in connection with an increase in the line of credit, which would be a credit transaction and would depend on any authorization you have from the consumer for obtaining consumer reports.

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Learn more about Nancy Derr-Castiglione’s webinar Understanding Fair Credit Reporting Act’s Permissible Purpose